Knowledge Check 01 Well Wheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company is projecting sales of 1,000 units for the month of March. There are 30 units in the beginning inventory. Each unit requires 20 ounces of raw materials and 0.20 direct labor hours to make. The company's policy is to keep ending finished goods inventory of 10% of the current month's sales. Selling and administrative expenses for the month have been budgeted at $2,000. How many units should Well Wheats produce in March? Well Wheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company is projecting sales of 1,000 units for the month of March. There are 30 units in the beginning inventory. Each unit requires 20 ounces of raw materials and 0.20 direct labor hours to make. The company's policy is to keep ending finished goods inventory of 10% of the current month's sales. Selling and administrative expenses for the month have been budgeted at $2,000.

1. Knowledge Check 01 Well Wheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company is projecting sales of 1,000 units for the month of March. There are 30 units in the beginning inventory. Each unit requires 20 ounces of raw materials and 0.20 direct labor hours to make. The company's policy is to keep ending finished goods inventory of 10% of the current month's sales. Selling and administrative expenses for the month have been budgeted at $2,000. How many units should Well Wheats produce in March?
2. Well Wheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company is projecting sales of 1,000 units for the month of March. There are 30 units in the beginning inventory. Each unit requires 20 ounces of raw materials and 0.20 direct labor hours to make. The company's policy is to keep ending finished goods inventory of 10% of the current month's sales. Selling and administrative expenses for the month have been budgeted at $2,000.

Knowledge Check 02 Assume that the beginning raw materials inventory is 2,000 ounces. If the desired ending raw materials inventory is 20% of the current month's production needs, calculate the budgeted raw materials to be purchased. 23,680 ounces 21,680 ounces 21,400 ounces 19,120 ounces   

Knowledge Check 03 If the direct labor cost per hour is $0.75, calculate the budgeted direct labor cost for the month of March.

1. Knowledge Check 04 Well Wheats, Inc. produces breakfast cereal and sells each box, or unit, for $7.  The company has forecast production for the next three months as follows: July 5,000 units, August 6,000 units, September 3,500 units. Monthly manufacturing overhead is budgeted to be $20,000 plus $5 per unit produced. What is budgeted manufacturing overhead for July? 
2. Knowledge Check 05 Well Wheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company is projecting sales of 1,000 units for the month of March.

1. The total cost of producing one unit includes $2 for direct materials, $1 for direct labor, and $0.50 for manufacturing overhead. Calculate the cost of goods sold for the month of March.

1. Required information [The following information applies to the questions displayed below.] We discuss how budgeting for a merchandiser is different than budgeting for a manufacturer. Merchandising firms prepare a merchandise purchases budget instead of a production budget. All of the other budgets prepared by a merchandiser are similar to those of a manufacturing firm.

Knowledge Check 01 Cobra, Inc., a sporting goods retailer, estimates to sell 50,000 units in the next quarter. The beginning inventory is 4,000 units and ending inventory is estimated to be 20 percent of estimated sales. How many units should be purchased?

1. We discuss how to prepare the cash budget and understand the relationships among the operating budgets, cash budget, and budgeted balance sheet. The cash budget helps managers determine whether they need to borrow money to fund operations, or whether they can make repayments toward their borrowings or invest excess cash to earn interest. The cash budget and the budgeted balance sheet are forward-looking versions of the statement of cash flows and the balance sheet.

Soup Inc. has the following budgeted sales: January $60,000, February $80,000, and March $90,000.  40% of the sales are for cash and 60% are on credit. For the credit sales, 75% are collected in the month of sale, and 25% the next month. The total budgeted cash receipts for March are:

We discuss how to prepare the cash budget and understand the relationships among the operating budgets, cash budget, and budgeted balance sheet. The cash budget helps managers determine whether they need to borrow money to fund operations, or whether they can make repayments toward their borrowings or invest excess cash to earn interest. The cash budget and the budgeted balance sheet are forward-looking versions of the statement of cash flows and the balance sheet.

1. Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. ! Required: 1. Determine Shadee's budgeted total sales for May and June. 2. Determine Shadee's budgeted production in units for May and June.
2. Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. ! Required: 1. Determine Shadee's budgeted total sales for May and June. 2. Determine Shadee's budgeted production in units for May and June.  Required 1 Required 2  Complete this question by entering your answers in the tabs below

1. Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. ! Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 per month, and variable manufacturing overhead is $1.75 per unit produced. Required: 1.

11.Determine Shadee's budgeted cost of closures purchased for May and June. 2. Determine Shadee's budget manufacturing overhead for May and June.  Required 1 Required 2  Complete this question by entering your answers in the tabs below. Determine Shadee's budgeted cost of closures purchased for May and June. (Round you’re an

12.Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending 13.finished goods inventory for June will be 60 units. ! Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 per month, and variable manufacturing overhead is $1.75 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. 2

1. Determine Shadee's budget manufacturing overhead for May and June.  Required 1 Required 2  Complete this question by entering your answers in the tabs below. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate value) round answer to 2 decimal place.

15.Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. ! Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $8 per hour. Required:

1. Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. ! Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $1.75 per unit produced. Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $8 per hour. Required: 1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $4.) 2. Compute the Shadee’s budgeted cost of goods sold for May and June.  Required 1 Required 2  Complete this question by entering your answers in the tabs below.

16.

Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $4.) (Round your answer to 2 decimal places.)

1. 1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $4.) 2. Compute the Shadee’s budgeted cost of goods sold for May and June.
2. Additional information: Selling costs are expected to be 8 percent of sales. Fixed administrative expenses per month total $1,300. Required: Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal.

19.Additional information: Selling costs are expected to be 8 percent of sales. Fixed administrative expenses per month total $1,300. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $4.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

1. Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 14,000 units at $60.00 each. Each unit requires 3 pounds of direct materials at $3.50 per pound. Each unit requires 1.7 hours of direct labor at $18.00 per hour. Manufacturing overhead is $4.50 per unit. Beginning direct materials inventory is $5,000.00. Ending direct materials inventory is $6,350.00. Selling and administrative costs totaled $138,120. Required: 1. Determine Ceder's budgeted cost of goods sold. 2. Complete Ceder's budgeted income statement.  Required 1 Required 2  Complete this question by entering your answers in the tabs below. Determine Ceder's budgeted cost of goods sold. (Do not round the intermediate values.)